Union Finance Minister Nirmala Sitharaman told the Lok Sabha on Monday that scheduled commercial banks have written off Rs 10,09,511 crore of loans in the last five financial years and the process of collecting dues from borrowers is on. Sitharaman said recovery of NPA (non-performing asset) accounts, including written-off loans, is an ongoing process.
According to Reserve Bank of India (RBI) data, public sector banks have recovered Rs 4,80,111 crore, including Rs 1,03,045 crore from written-off loans, in the last five financial years, he said.
“According to the inputs received from the RBI, scheduled commercial banks have written off Rs 10,09,511 crore in the last five financial years,” Sitharaman said during question hour.
Borrowers of written-off loans will continue to be liable for repayment and the process of collecting dues from borrowers in written off loan accounts continues, he added.
Banks are continuing recovery operations initiated on written-off accounts through various recovery mechanisms, Sitharaman added.
Proceedings include filing suits in civil courts or in court Debt Recovery TribunalsProceedings, filing of suits under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 National Company Law Tribunal Under the Insolvency and Bankruptcy Code, 2016, negotiated settlement and conciliation and sale of NPAs.
“Therefore, the waiver is of no use to the borrowers,” he said. The minister said NPAs, including those fully provisioned on completion of four years, were written off as per RBI guidelines and the policy approved by the banks’ boards. balance sheet of Bank Anxiety through writing.
Banks, as per RBI guidelines and policy approved by the Boards, assess and consider the impact of the waiver as part of regular activity to clean up their balance sheets, avail tax benefit and improve capital.
Answering a question, Sitharaman told the process of recovery Money The number of small depositors and investors who defaulted on loans was complicated by the fact that there were many claims to seized assets, involving banks and other financial institutions, and the legal process was lengthy.
The Minister said that he is aware of the great hardship the depositors are facing and there is a need to look into this issue and how to simplify the process.
Earlier, Minister of State for Finance Bhagwat Kishanrao Karad said the names of the defaulters were not being released due to RBI guidelines, but they could be released once their properties are auctioned.